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Pledge to end crisis at Airbus parent

The French government has pledged to take action to end the crisis at Airbus parent company EADS a week after a huge drop in shares in the European aerospace group.

22 Jun 2006 00:31 GMT

The 55- seat A380 superjumbo is a year behind schedule

Dominique de Villepin, the French prime minister, said on Wednesday the "all necessary measures" would be taken.

Shares in the European Aeronautic Defence and Space Company dropped by 26% when Airbus announced more delays to A380 superjumbo aircraft.

The French government owns 15% of EADS but under current company statutes operational decisions are left to the private shareholders, the French defence and media group Lagardere SCA and German carmaker DaimlerChrysler AG.

EADS shares rose 6.5% on Tuesday after Villepin and Thierry Breton, the finance minister, said the government was seeking changes to the company's management and ownership structures.

The German government is likely to resist any move by France to increase its influence over the aerospace company. The crisis at EADS has already caused "some concern" in Berlin, Michael Glos, the German economics minister, said on Tuesday.

Under scrutiny

Six EADS executives, including French co-chief executive Noel Forgeard, exercised stock options just weeks before management ordered an assessment of production hitches with the Airbus A380.